SINGAPORE – The Ministry of Manpower this week clarified overtime work practices and regulations in the country after receiving a question from Parliament.

MP Gerald Giam Yean Song inquired about how many employers purportedly inflated workers’ job titles to circumvent having to pay them for overtime work.

Song also asked about the safeguards in place and MOM’s enforcement approach to ensure fair labour practices.

MOM replied: “The prevalence of misclassification to avoid paying overtime pay remains low.”

Over the past three years, the Tripartite Alliance for Dispute Management (TADM) has received an average of 45 claims annually from workers who alleged their employers artificially inflated their job titles to evade overtime pay obligations.

Investigations found about 30% of these claims were valid, leading to compensation for affected employees.

However, rather than job titles alone, the ministry assesses the actual scope of an employee’s duties – such as whether they hold genuine decision-making authority – before determining their eligibility for overtime pay.

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Overtime loopholes, inflated job titles and unpaid hours

In Singapore’s fast-paced economy, where long hours are often seen as a badge of honour, concerns over excessive overtime and employer compliance with labour laws remain pressing.

For many employees, the promise of career advancement may come with a hidden catch – fancy job titles that elevate their status on paper but strip away overtime entitlements in reality.

This underscores a growing challenge: the fine line between genuine job progression and a strategic loophole to bypass overtime laws.

While most employers play by the rules, a minority have been gaming the system, potentially contributing to employee fatigue and dissatisfaction.

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Regulatory safeguards: Keeping employers in check

To prevent such abuses, MOM has put multiple safeguards in place, combining education with enforcement to ensure compliance.

Workright outreach campaigns

These initiatives aim to educate both employers and employees on their rights and obligations under the Employment Act. Awareness is often the first step in curbing non-compliance.

Regular inspections

MOM conducts approximately 5,000 Workright inspections annually, acting as a watchdog to identify lapses.

Employers found guilty of violations are required to attend Employment Act clinics, while repeat or severe offenders face stricter penalties, including fines and legal action.

Having maintained a proactive stance for years, MOM seeks to close the loopholes that allow some businesses to cut corners at the expense of workers’ rights.

Burnout and overwork: Are workers paying the price?

While MOM has not conducted specific studies on the link between non-compliance with overtime laws and worker burnout, safeguards are in place to ensure employees get adequate rest.

The Employment Act mandates:

Mandatory rest days: Workers are entitled to at least one rest day per week.

Work hour restrictions: Employees cannot be contractually required to work more than eight hours per day or 44 hours per week.

Workplace Safety and Health Act: This requires employers to conduct risk assessments to manage workload and prevent exhaustion-related accidents.

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An endless cycle of unpaid overtime work

Although these measures exist on paper, the reality on the ground can be different. In industries where long hours are the norm, overwork is often expected rather than questioned.

Without stringent oversight, some employees may find themselves trapped in an endless cycle of unpaid overtime work, leading to burnout and diminished productivity.

MOM’s approach to enforcement is a blend of education and deterrence, ensuring that employers have the opportunity to comply before facing harsher penalties.

Educational interventions: For first-time or minor breaches, employers are educated on their obligations and expected to correct any issues.

Administrative penalties: Employers who fail to issue accurate payslips or underpay overtime wages can face fines – SG$100 for the first breach and $200 for repeat offences.

Legal action: In cases of wilful or egregious non-compliance, MOM takes stronger action, including prosecution and heavier fines.

Over the past five years, MOM has taken action against approximately 40 employers annually for underpayment or non-payment of overtime, with another 10 penalised for issuing inaccurate payslips.

Employees who believe they have been short-changed are encouraged to seek assistance from MOM or TADM.

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A culture shift in Singapore’s work hours?

While job title inflation to skirt overtime laws remains relatively uncommon, MOM’s vigilance ensures that workers are not left in the lurch.

However, the issue of excessive work hours in Singapore extends beyond regulatory compliance – it’s also a question of workplace culture.

Singapore has long been known for its demanding work culture, often ranking among the most overworked countries in the Asia-Pacific region.

Employees clock an average of 45 hours per week, with a 2021 survey revealing that one in four full-time workers exceed 48 hours – a threshold linked to heightened stress and diminished wellbeing.

The country’s relentless pursuit of excellence, entrenched presenteeism, and the growing overlap between work and personal life – exacerbated by remote work – have fuelled a culture where long hours are the norm rather than the exception.

This drive for productivity comes at a cost.

Studies indicate that 73% of employees in Singapore experience unhappiness due to overwork, while 62% report burnout. It’s an alarming trend that threatens both employee wellbeing and organisational performance.

Recognising the need for change, Singapore is gradually refining its labour laws to curb excessive work hours and foster healthier work-life integration.

However, legislation alone isn’t enough. Employers play a critical role in reshaping workplace norms. Businesses are encouraged to:

Equip managers to recognise and mitigate burnout before it escalates into disengagement or attrition.

Foster a culture of disconnection by setting clear boundaries around after-hours communication.

Encourage open conversations on work-life balance to destigmatise the need for rest and recovery.

Offer flexible work arrangements that allow employees to manage their time more effectively without compromising productivity.

As Singapore moves towards a more sustainable workforce model, companies that prioritise wellbeing will also cultivate a more engaged, resilient, and high-performing workforce.

Businesses, however, will need to rethink traditional work expectations.

Are long hours truly a measure of dedication, or do they mask inefficiencies?

Employers who continue to test the boundaries of labour laws may find that short-term gains come at the cost of long-term employee wellbeing and retention.

For HR and business leaders, the challenge is to stay compliant while fostering a work culture that values efficiency over exhaustion.

After all, in the race for productivity, a well-rested workforce might just be the real game-changer.